Our lease calculator allows you to calculate actual interest or monthly payments for any lease under consideration. If you're aware of interest rate being charged then you can use that "Fix Rate" for calculating your monthly payments. Before you start using the lease calculator , let's first look into what leases actually are.
What Is Meant By Lease?
Lease is, basically, a contract that is made for using some asset. The person who owns the asset is referred to as the lessor whereas the person who's looking to use that asset is called as lessee.
Though most of the leases involve cars and houses, but almost anything can be leased. It is common for businesses to lease important equipment, because it favorably affects the taxes and bottom line.
Leasing some asset is also quite different from renting it. Lease contracts tend to be strictly binding agreements and both the parties making this agreement won't be able to deviate from the terms of the agreement unless there is some very exceptional and understandable reason for that. If you lease some apartment for five years, for instance, you'll owe its rental payments for the term of the lease and you'll have to make those payments every month. In case of non-compliance some serious penalties will be charged.
Rental contracts, on the other hand, have more considerate rental terms for tenants and allow them to even move out of the apartment early. Sometimes late payments are also allowed as well. For that reason, landlords usually don't lease their apartments to individuals as the laws for rental contracts offer better protection not just for the tenant but also for the landlord. On the contrary, if a business is looking for an apartment that they can use for the stays of their executives, they might find lease agreements more favorable for them.
If you agree to the lease agreement, you have to deposit some amount for covering any non-payment or damage risks. The lease, however, clearly states that these deposits are refundable.
Talking about our lease calculator, it works just fine for fix rate leases and gives the most exacting numbers in return. Enter product/property value, residual value, the term of the lease and the rate of interest to accurately calculate monthly payments, the total interest that you will have to pay over the period of the lease and the total of your monthly payments at the end of the lease term.
Hit the calculate button on the lease calculator after entering all the parameter values and it will calculate accurate results for you.